This error occurs when the edit capability is enabled on an image service and if you have not defined the dynamic image workspace.
Solution
To check if the edit capability is enabled on your image service, go to the Imaging page on the Service Editor dialog box. The Edit check box under Operations allowed will be checked if it is enabled.
- Right-click the message and click Show Editing Configuration page.
- Click Managenext to Manage Dynamic Image Workspaces.
- Add a workspace from which the data will be added to the image service.
- Click OK.